About the project

Peru's high rate of economic growth has led to a substantial increase in total energy consumption, which is expected to continue to increase in the future. In the short term, this could lead to potential shortfalls in electricity supply because the generation capacity is not enough to keep pace with the demand. This poses a threat to economic growth and business competitiveness if shortages lead to suspension of operations, or additional costs due to ensuring a steady energy supply.

Peruvian companies still have to show significant leadership in boosting energy efficiency, in a context where the market for energy efficiency services and financing have not been successful. Possible reasons for this include:

• "Demand side failure", due to a lack of understanding by business managers of the need to work on energy efficiency, framed in terms of opportunity cost and risk reduction.
• "Supply-side failure" due to relatively low levels of experience in energy efficiency.

This project addressed both sides of the issue by establishing a group of business leaders in Peru to pilot energy and financial savings (and reductions in carbon emissions), while simultaneously building capacities in the local market of experts.

Implementing organisation: Carbon Trust

Other partners: The Environmental Technology Center SENATI (CTA), Südesco Energía y Perú 2021.

Project funding: £ 115,000

The products of this project are a study of each sector and a summary document:

Summary Paper: Climate compatible development in Peru: Energy Efficiency in the Peruvian Private Sector (Spanish)

Report: Enhancing private sector engagement in energy efficiency in Peru.

Photo: Peruvian Society of Environmental Law or SPDA